Live Commentary

Gold price steadies after rallying after the release of US data that changed the outlook for interest rates, a key factor for Gold. The data revealed cooling inflation and flatlining spending, which suggests interest rates might fall. Lower interest rates are positive for Gold price and the pair is in an uptrend on the charts.

The Australian Dollar appreciates due to the improved risk sentiment on Wednesday. The Australian government is targeting headline inflation and seeking to ease cost-of-living pressures by earmarking billions in funding. The US Dollar lost ground as investors digested higher-than-expected US PPI data.

USD/JPY rises to 156.50 with eyes on crucial US inflation readings. Investors expect that the fed will start lowering interest rates from September. Japan’s Q1 GDP will indicate the economic strength.

The US Dollar consolidates on Monday after whipsaw moves last week. The economic calendar is quiet on Monday ahead of a busy week ahead.  The US Dollar Index trades around 105.30, in the middle of last week’s range.

The Pound Sterling holds gains above 1.2500 inspired by strong UK Q1 GDP data. The UK economy expanded by 0.6%, moving out of the recession seen in the second half of 2023. Investors await UK employment and US inflation data for fresh guidance.

USD/CHF drifts higher to 0.9085 in Thursday’s European session. The hawkish comments from many Fed policymakers support the US Dollar (USD). The Swiss Unemployment Rate fell to 2.3% MoM in April from 2.4% in March, the lowest level in four months.

AUD/JPY could continue its winning streak due to improved risk appetite. The Australian Dollar depreciated due to the less hawkish RBA despite higher inflation in March. The Japanese Yen struggles despite the potential for intervention by Japanese authorities.

Gold price recovers despite the renewed USD demand on Wednesday. Investors place lower bets on the potential Fed interest rate cuts in 2024. The Fed’s (Fed) Philip Jefferson, Susan Collins, and Lisa Cook are scheduled to speak later on Wednesday.

Canadian Dollar easing but sticking to midrange. Canada Ivey PMI beat expectations in April. CAD markets wait for Friday’s Canadian labor data.